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Malloy Proposes $317 Million in New Tax Revenue for FY 2018

June 27, 2017 By Staff
Malloy Proposes $317 Million in New Tax Revenue for FY 2018

Malloy made the argument, in a Monday press conference, that without this new tax revenue, services and local aid in the state will be slashed to the bone.

Connecticut will pay the price for operating in the new fiscal year without a budget, and Gov. Dan Malloy (D-Conn.) made that clear on Monday.

In a press conference, the governor proposed operating on what he calls a “mini budget,” which “would require legislative approval and operate state government [from July 1] until October 1.”

The upsides, according to Malloy’s office?

  • “Less severe” cuts to local aid
  • Restores some $35.6 million in funding for hospitals
  • Restores some $56.5 million in funding for non-profit social services providers

The downside? Almost $320 million in new tax revenue.

The CT Mirror laid out just how Malloy’s proposals add up to $320 million, in an article published on Monday:

  • “$68.3 million in additional income tax revenues by restricting a property tax credit to households with dependents and by freezing a tax credit for working-poor families.”
  • “$60 million to be raised by a tax amnesty program covering income, sales, corporation and other taxes.”
  • “$26.4 million by capping various business tax credits.”
  • “$5.0 million from increasing various license and permit fees and fines.”
  • “And $137.3 million in one-time funds to be swept from various off-budget accounts.”

For those wondering, “tax amnesty” is a program through which delinquent taxpayers are offered the chance to pay off taxes due, often without interest or penalties. Pennsylvania is wrapping up a two-month tax amnesty program this month.

Still, Malloy’s proposal – and his defiant press conference on Monday – underscore the tough fiscal situation Connecticut is in. Without a budget by July 1, it looks like things may get much worse.